Page 16 - FINAL CFA SLIDES DECEMBER 2018 DAY 3
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Session Unit 2:
8. Statistical Concepts and Market Returns
LOS 8.g: Calculate and interpret 1) a range and a mean absolute deviation and 2) the
variance and standard deviation of a population and of a sample.
Example: Assume that the 5-year annualized total returns for the five investment managers used in the preceding
examples represent only a sample of the managers at a large investment firm. What is the sample variance of these
returns?
